Woolworths in South Africa has always been the stalwart of quality and the desitnation for unusual and interesting products that you generally cannot find anywhere else.
People did not mind paying slightly more for the perceived “better quality” of Woolies products, particualrly with the introduction of Marks & Spencer products in recent months.
However, Woolies has, undoubtedly, declined in quality and service over the last two years, particulalry with regard to the reduced stock quality, chornically empty shelves and the recent 10 – 15% price increases across its entire range of food products.
(Ed’s note: R52 for 180g of Ostrich biltong is Ridiculous! – That’s nearly R300 a kilo!)
But one retailer, Spar, seems to be chomping at Woolies’ heels when it comes to quality and the overall appeal of its products and stores.
Spar has always been the retailer that never really had a position in the market. Yes, Spar shops are open later than others and their prices are around 10% more expensive than, say Pick n’ Pay or Checkers Hyper, but recent improvements to the chain’s brand, store appearance and range of products are making waves in the market.
Woolworths has always positioned itself in the market as a premium retailer and, until recnetly, succeeded in appealing to a wider variety of people by creating the perception that its products are not that expensive in relation to their quality.
There is no doubt that fruit and vegitables bought from Woolies have been of the highest quality and do seem to last longer.
Even the growing and increasingly-affluent middle class in South Africa almost see it as a status symbol – being able to shop at Woolies and sport additional products such as the retailer’s own store card or Visa credit card.
But ongoing problems that dog Woolworths on a continual basis (poor stock levels and empty shelves particulalry), and the retailers apparent re-positioning in the market as a premium brand (again) in an environment where debt-layden consumers are having to tighten their purse strings, could spell out problems in the future.
That said, if Spar continues along this path of improvement, it is sure to overtake Woolies in the market and attract a growing clientelle who would usually have gone to Woolies for quality or unusual food products.
Make no mistake, many Spar stores have a long way to go in the store-appearence and stock-variety categories, but, certainly, both the new and improved stores that are making an appearance across South Africa are proving to be pleasently surprising to many people.
Watch out Woolies, Spar is coming back in a big way.
(NOTE: I am in no way affiliated to either Woolies or Spar and do not have any vested interest in either company).
I was at Woolworths yesterday to buy some odds and ends for lunch. Have not been there for a while (I do most of my shopping at trusty ol’ Pick n’ Pay) but I have to say I was absolutely gob-smacked at the prices Woolies is charging for basic items.
